Intel slips in pre-open; analysts trim forecasts

NEW YORK (MarketWatch) -- Shares of Intel
INTC, -0.78%
slipped nearly 1% in pre-open trading after analysts lowered their forecasts for the chipmaker's second quarter following a warning from rival Advanced Micro Devices
AMD, -3.04%
that revenue would fall short of forecasts. Thomas Weisel Partners analyst Eric Gomberg cuts his earnings estimate to 13 cents a share from 14 cents and his revenue forecast to $8.22 billion from $8.33 billion. Gomberg expects "disappointing" gross margins, which he expects to fall 6.40 percentage points sequentially, due to weaker-than-anticipated PC demand and aggressive pricing. Prudential analyst Mark Lipacis lowered his second-quarter earnings estimate to 10 cents a share from 11 cents and now expects revenue to be down 11% sequentially to $8 billion, or at the low end of the company's forecasted range. Intel's stock, a component of the Dow industrials, was down 15 cents, or 0.8%, at $18.70. Meanwhile, rival AMD was shedding 4.7% to $22.72.

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